CRUDE MOC: Dubai spread sinks to 2016-lows amid tussle for crude market share in Asia

The Middle East sour crude market fell to lows not seen since early 2016 on Wednesday amid a renewed tussle for market share in Asia, with producers seeking to maximize crude exports following the breakdown of the OPEC+ accord.

The May Dubai cash/futures spread tumbled more than 40 cents/b day on day to be assessed at minus $2.405/b at the end of the Platts Market on Close assessment process in Asia on Wednesday.

The spread, a proxy of spot market sentiment for Middle East crude in Asia, was last this low on January 19, 2016, assessed at minus $2.41/b.

Middle East crude producers were in the final stages of confirming term volumes for April to customers in Asia, several market sources told Platts on Wednesday.

"Nominations coming through, I hear," said a crude trader based in Singapore. "So today is more likely we will see the effects -- could probably take the whole [Middle East] complex down."

May cash Oman's discount to May Dubai futures also declined Wednesday, albeit at a slower pace than for cash Dubai. The cash Oman/Dubai futures spread ticked down to minus $2.21/b as of 4:30 pm in Singapore (0830 GMT).

This was down from minus $1.97/b the day before, and the lowest for the spread since November 17, 2015, when it assessed at minus $2.46/b, Platts data showed.

Meanwhile, cargo bids and offers, and wider spot market deals took a breather Wednesday amid term allocation confirmations, market participants told Platts.

"Price will become clearer once nominations are done," said one seller who was keeping to the sidelines Wednesday.

The Platts MOC saw 18 partials of May Dubai crude change hands between various buyers and sellers on the day. This brought the total number of partials traded so far this month to 40, with two of these Oman partials.